The International Monetary Fund (IMF) has said that it expects the UAE's economy to grow 3.25 per cent this year.
It has, however, warned that regional events could put additional pressure on corporates.
The IMF said that CPI inflation is expected to remain moderate at 4 per cent, as rents continue to fall.
Taline Koranchelian, head of an IMF delegation that recently concluded a visit to the UAE, observed that strong tourism, logistics, and trade in Dubai, allied to large public investment spending in Abu Dhabi, means that non-oil GDP growth is projected to accelerate from two per cent in 2010 to 3.25 per cent this year.
"Risks to the recovery remain, including from possible economic spillovers of regional events," Koranchelian said in a statement.
"The excess supply of property in Dubai and the uncertainty regarding its size will continue to weigh on growth."
The IMF oversees the global financial system by following the macroeconomic policies of its member countries.